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Smes Competitiveness In An Integrated Economy: A Preliminary Study From Indonesia

Author

Listed:
  • Eko Suseno HR Matrutty

    (Department of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia)

  • Rosaly Franksisca

    (Department of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia)

  • Theresia Woro Damayanti

    (Department of Accounting, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia)

  • Supramono

    (Department of Management, Faculty of Economics and Business, Universitas Kristen Satya Wacana, Salatiga, Indonesia)

Abstract

ASEAN Economic Community (AEC) offers both opportunities and challenges to Indonesian Small Medium Enterprises (SMEs). Highly competitive SMEs are likely to exploit opportunities from AEC by expanding their markets and securing raw materials at lower costs. On the contrary, the increasingly intense competition is likely to marginalize less competitive SMEs in their own domestic market. This study aims to analyze the SMEs competitiveness in anticipating AEC. Using 64 SMEs that already export their products or have potentials to export as the sample; this research shows that Indonesian SMEs exhibit a high competitiveness level from the perspective of the production factor, the availability of related and supporting industries factor (especially in relation to the availability of raw and supporting materials), and the demand factor. However, SME owners acknowledge that AEC intensify competition and the government has not provided adequate facilities to improve the SME competitiveness.

Suggested Citation

  • Eko Suseno HR Matrutty & Rosaly Franksisca & Theresia Woro Damayanti & Supramono, 2018. "Smes Competitiveness In An Integrated Economy: A Preliminary Study From Indonesia," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 3(1), pages 7-16, March.
    • Handle: RePEc:ora:jrojbe:v:3:y:2018:i:1:p:7-16
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    Citations

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    Cited by:

    1. Afris Widya-Hasuti & Abbas Mardani & Dalia Streimikiene & Ali Sharifara & Fausto Cavallaro, 2018. "The Role of Process Innovation between Firm-Specific Capabilities and Sustainable Innovation in SMEs: Empirical Evidence from Indonesia," Sustainability, MDPI, vol. 10(7), pages 1-26, June.

    More about this item

    Keywords

    Competitiveness; Diamond Model; SME; AEC.;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • Z21 - Other Special Topics - - Sports Economics - - - Industry Studies

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